BURU - Earnings call 2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for attending NUBURU, Inc.'s Second Quarter 2023 Financial Results Call. [Operator Instructions]. I would now like to turn the conference over to your host, Ralf Esper, External Director of Investor Relations at Gateway Group. Thank you.

Mr. proceed, may You Esper.

Ralf Esper

and Quarter everyone XXXX operator, on joining NUBURU's Second Earnings thanks you, for to us Thank Conference Call.

today and Financial call Officer second the are NUBURU's Zediker, Joining Chief quarter and results. Co-Founder; to Brian Officer, Chief Knaley, discuss our Mark Executive

in to certain in subject our that provision forward-looking and this safe statements call, be earnings can be detail These XX-Q our found those to also statements the release at we harbor today statements During uncertainties about will further including related Form make our will forward-looking. provide press filed are of risks be our risks that forth set for business. and end and the

required undertake law, we as update no except any by to Additionally, obligation forward-looking statements.

GAAP regarding results and information substitute in as our We not results information provided or found at provide certain on to with comparable Relations the the considered and will targeted GAAP. measures. posted This of be a accordance non-GAAP should the of second historical non-GAAP published afternoon historical release supplement website our to of our for earnings superior section also in can this reconciliation be ir.nuburu.net. Investor The measures quarter

call Mark. over turn Mark? now will I the to

Mark Zediker

our XXXX everyone to joining you, and Ralf, Thank thanks earnings us second today for for quarter call.

might we to various solutions highlighting of NUBURU, our As our story, I'd and to brief introduction comprehensive discussion to you new range industries. some like of today's customers our core be a to kick with off offer the across technologies

before quarter year a outlook I results. performance corporate and our on during provide financial proceed the financial review milestones quarter a third elaborate XXXX and of our Thereafter, second significant for full will with I

the for of the to pioneered and market cutting-edge ever-evolving sustainable demand we surging solutions production ourselves manufacturing processes. energy-efficient NUBURU, At landscape positions and meet

laser for unprecedented in transformative we've blue plethora conventional the shift the embodies way laser quality. metal protected which our efficiency. and speed Through additive the of a manufacturing groundbreaking paved core the advancements of delivering and transformational principles patents, by performance machining technology, and technology, blue is Our laser, with displacing methods

More Our welding, core, leverage solutions a remains XD we as performance blue products further its a the one benefits At multiple across laser a approximately capabilities manufacturing thought to and $XX laser with and for bit. blue applications of were growing markets XX addressable in technology to generate in we address new countless impossible. previously And various growing total of that, list applications. the market billion large, that serviceable, on top markets that high-growth our the of challenges printing on several years. of the next cost enabled as in best of of

to also The production applications give Our necessary phaseout our products. to higher end evolution increase here. demand systems, customers continue line outgoing power to the targeting is laser doesn't manufacturers AO systems in blue stop new our innovation that is performance. But AO even and brightness technology of and planned that target performance. and NUBURU's production, durable more we BL-XXX, the sustainable current using while With performance produce flexibility and the

applications kilowatt even attributes critical announced which introduced the we repeatable deep enabling printing. BL of higher for As XD next-generation in needs June, of are wells, high-quality welding X latest large our all speed, EV spatter-free and penetration, commercial battery and system, including

with unmatched are laser, by deploy portfolio, our aiming combined which forward product that due including for capabilities the commercially for this to we are to absorption the overall XXXX. crucial scanner, higher developing countless single-mode opportunities further the its harness to NUBURU Market improve ability of We this our technology look product characteristics. provides to to a compatibility BL-XXXX-F's benefits with metals The blue customers. light, manufacturing

significant million we new product from have A our additional that capital of $X.X road ago, we our highlights. development already our commercialization. welding our to private announced existing blue have in and continue little progress continue a execute long-term investors. execute will and us recent multiple converting we help customers we and technology map our to additive development contract month now And over manufacturing, growth chip against and across The made placement Transitioning strategy. awards secured efforts with into

As on such, of a over growth strong report a pleased we total to year-over-year of of top are another basis. sales improvement X,XXX% with total million, financial line period $X.X

Let me dive little deeper. a

platform. technology as laser to our of aims integrating continued blue collaboration multiyear Essentium a their expand cutting-edge the This defense to for further and applications, deliveries into high-speed in possibilities our deliver units The manufacturing During extrusion new to enhance second of technology use manufacturing strategic of by partnership. of additive automotive, part aerospace industries. we unlocking into product aims quarter, integration to additive parts these NUBURU's their platform metal

machine announced research contract GE NUBURU continuing Additive of to I'm Additive for and the Furthermore, and XXXX. pleased GE additive in with as addition awarded and small support system to inform contract blue area testing. printing with to expertise, blue accuracy agreement head we've with agreement using part a delivered of entered AFWERX's GE proprietary goal first that into to to Additive previously the explore This you our speed our to and development that for to business laser-based laser we technology in agreement joint manufacturing. commercial innovative Additives development NUBURU's GE improve joint opportunities

we've this NASA. recently, week the with most announced contract just And

a an beaming only suitable Together excited system incredibly high as that and it The the about missions. upcoming of needed. equipment lifting system equipment opportunity into the cost the of Mars and gaming it a and need power A or Moon the provides NASA, necessary unique is is weight on blue seeking to reduces of for technology. wire laser the by our or blue for solution driven dramatically the for we with this for laser space size demonstrate application are Mars. transporting the Moon our are to deployment for power enabled using We feasibility

application power well. deployed other bring expect laser to in be for blue be or As to minutes [ the to we areas, ] entities critical as system this FEMA government the DoD like interested will within

addition, In for above scatter Scattering atmosphere, suspended guidance would to off Martian creating moon's habitant, guided powder the highway the laser off the NUBURU's the the a surface due these Rayleigh thus provide the fine or visual regolith surfaces. across visible

weapons, equipment as Our technology by of applications. blue contract high-energy as our the we our with the our for Department and support solid-state selection Defense NASA at of range of quarter, well fabrication the of of prototype in the delivery beginning wide laser of announced potential and laser the which U.S. to testimonials and its

remainder lens-related chain supply we are product cognizant bottlenecks process BL year, that respectively, of with our in particular, present components, forward procurement look the scanner of the to line. we associated and components, for the in scanner conditions As the

year. the However, abate second this with initiatives place, believe of half alternative sourcing in of towards end constraints material the we will such

As part and of top-down where margins saving possible. boost opportunities and measures team our implementing our gross operational approach revenue efficiencies expansion, assesses cost to for consistently

will the across our success these initiatives they provide updates We of operational as on strategy. are implemented

recognition of compress difficult fourth the quarter year, supply the the the sales to half XXXX. end but second chain the towards of Given quarter rebound with pulling backdrop, of revenue anticipate majority of we third during through this

develop products cadence across charter additional we new contract supported and continue by to our the commercial this all markets confidence as awards for Our in the additional time in is activities BL-XXX evolve. market our

sales due achieving adoption in summary, with commercial our excess deliveries target our confident to market technology, product year In execution conjunction our customers our blue full the to in laser of in $X strong remain of million. of we

financial of I the of call will Brian XXXX. the details to second quarter the now turn over discuss to

Richard Knaley

review Thanks, SEC, on can speak well Mark. private in file the greater with the be results. second detail. as as I'm in [ that will XX-Q which pleased to our quarter Further of to ] details the be placement found

our Let second for me with begin the results quarter.

increase sales and sales systems second were $X.X system to the laser the a which mix and product to the attributable is customer the in quarter of Our million, number during period. X,XXX% primarily of XXXX, sales of an increase quarter second laser compared

of approximately compared related obsolete product was Our the a to to $X.X of write-off attributable loss million line $XXX,XXX primarily excess gross in and negative million XXXX, AO a onetime second the inventory. of profit a quarter to $X.X

was compared X,XXX% XXX% driven by a in inventory onetime impact the to second the primarily margin line gross write-off. partially a of Our negative quarter of gross of negative product XXXX, the a AO by offset margin increasing revenue,

of primarily of Total fees attributable the second the $X to and operating a in expenses research administrative company supplies contributors is professional to the increase public were product related the million, a XXXX. accounting of the and transitioning regular development increased in XXXX compared line. the following million quarter company the onetime second costs public legal, increase associated combination quarter development matters, business The Further tooling and compliance with being associated costs of of $X.X to general BL as to status with and to company. and and was the

We part of such, year. and part to the during decreased OpEx normalize the expect as spending of the second

loss quarter second the million of second $X.X million XXXX $X.X loss quarter Our operating an in to was the of net compared operating of in XXXX.

net of XXXX. $X.XX mentioned million Our $X.X to second expenses million compared per the loss onetime quarter net $X.XX related $X.X of previously. per This detailed primarily was in loss or a share share or the to is

free XXXX. million second $X.X negative operating usage flow cash $X.X expenses. EBITDA primarily to of of cash million a to a the in to Our a negative was XXXX, In increase quarter, compared $X the compared a in of had the usage million, flow million free attributable we total in $X.X quarter

balance the to turn now sheet. I'll placement and our effect its on private

amount and X the purchase appreciative rounds shares subsequent and support to stock. $X.X lockup as a is are of promissory and subject as As company's of an are new in commitment convertible the transaction shares approximately costs both the existing placement. extremely X-year the underlying confusion as convertible the shown by round raised the purchase and these deducting warrants agreements million. well well we from issuance total notes warrants as notes initial of common offering Mark cash of of mentioned, capital the Both investors consists the to to prior the The

careful for as June long-term the As million. of XX, aim cash had with of all in a equivalents manner accruing result, a and to of $X.X the efficient XXXX, and for company cash this stockholders. our intend benefits deploy capital and We

product $X the we XXXX, range million. deliveries performance the the strong $XX $XX $XX million. negative our reiterating outlook XXXX free in in range on million cash in and million. excess second EBITDA based and to $XX year total are million revenue of quarter our of be of negative flow negative negative sales of full in And and Finally, of

turn I'll Mark. This now call concludes my the over to summary. back

Mark Zediker

growth than growing are commercial closing, about more us for of technology-driven excited Thanks, ever with we Brian. In the solutions. interest opportunity our ahead

and XXXX out towards as accelerating generation revenue SML and and we BL momentum systems. with roll beyond robust remains outlook market Our our

focused Finally, as driven sustainable for to organization. our our thank efforts to shareholders. the and we driving supporting transition our like and for ultimately an would global Together, our company, delivering success we employees growth on dedication to profitable customers their has and strong which innovation, solutions the continued

back will now I your over questions. in turn us operator, will the taking the assist call who to

Operator

[Operator Loop Instructions] Capital. Baruah Your with Ananda first comes question from

Ananda Baruah

see it, I I Yes, Brian. for plate. well out guess, if few could. to the me, it during quarter I appreciate and your of just Mark a as Yes, good

additional useful follow-ups. You blue chip I additional such any with to context wanted mentioned be in of I of increased couple to you by that would NASA. noted as release, there's a in and But have regard other press products customers. if And the see also groups interest customers,

Mark Zediker

great a Mark. question. is Yes, This

getting been with have interest talking our those tremendous is this relationships. of developing and We a In enjoying customers, we to technology, in of government range to of customers results a work validate we've and performance, take the and products. BL-XXX been into range commercial a we've latest BL-XXXX there been lot application the the center and particular, and great

we're very So by there. seeing excited we're what

Ananda Baruah

milestones -- you are that I milestones, out, No, I that have the that's feel great. an you you it have technical guys BL-XXXX sort guess, to I what Yes. you of we notable achieve? in out for any to can going to one eye do keep was do gets guess, any important technical actually ask,

Mark Zediker

this Again, is Mark.

some the battery verify BL-XXXX's the the of are had center about it's series, looking those trying large are the good. a to AO with date, of And that earlier we're needs while and the amount technical that papers will accurate still We there. currently tests our the to very future, we likely meet validating results be very, There in manufacturer. we've released in application most achieved pretest talking capabilities,

common we scanner that ], we're and Furthermore, lens type the soldering components a BL-XXX, had lot as AO-XXX we're that, with a correlation assemblies board that a connector things the markets. product can center, welding we well in such which mode of and results laser seeing And previous with PC with our manufacturing, and of [ used again, and is application work the different the great at as past in validating for XC well.

closely the we [ area believe manufacturing many other and work able to important, medical to with compliance of ] And where that ROAs products. their will we is soldering be welding versus see in is they like very

Operator

with Your next Ivan question Tigress Financial. Feinseth comes from

Ivan Feinseth

Congratulations the Can some drivers revenue the a of little progress. you more great and about of on results into the go year-over-year growth? detail

Mark Zediker

question. Ivan, this again. Mark is Great

would the June the AO drive we've was in that were just and able of against growth here secure we been which a to driver products. is Essentium, being because and particular, it anticipating released June, offered. opened And real last release revenue got contract. had the new with last the product contract delivering that We So up been

In a addition the we've doing to AFWERX with fair Additive the amount XD area printing work contract. in our that, and GE partner of been

that also revenue the growth. so And to added

Ivan Feinseth

any the engagements being product some and because were some functionality the that and this? you of of more the how of detail is driving picked And then on interest

Mark Zediker

is question. And this again, Mark. Great

test and our we AO of prior for lasers to So line. the these product as able customers, application we're results blue in centers our chip validate prove

very use system. had we motion so now driving And which product limited talking planned series. great, had really product operation. when scanner the for the like to scanners, However, we is to year. had a can a system, proving we're was to in that that were with releasing what they're and this this AO is in targeted also product bury for style order slow-moving line the use laser in to experienced we what but work gantry what's manufacturing as markets, the was be really be -- people, this And this new it's we with need we to our blue in this it you in It's interest

the pull we're that because so And seeing really of capability. market

Operator

Gus comes next Your Instructions] Richard from [Operator Northland. question with

Auguste Richard

color little and mix the Can Yes. revenue BL-XXXX-F much the other revenue? BL-XXX, you How give of a us on quarter? any were in components

Mark Zediker

and change. the we this sales in thanks to a BL-XXXX-F. question. BL-XXX earlier the in forward, see a but XXX you of move again, mix that's Great the Sure, Gus. change will quarter, the BL-XXX sales and quarter, the -- X substantially quarter. we Predominantly, to predominantly going for had The was, quarter to [indiscernible] Obviously, as the

Auguste Richard

hit ] And again it. you about the talk you bit Can talked then about supply your that's then a how some lasers to ability [ Got just that and little constraints. coming produce along? and

Mark Zediker

Gus, question, Mark Great this again. is

we're So the referring scanners. delivery supply that constraints of was to

does customers' affect planned purchase the affect it scanners, lead not long on production of of does of some really themselves. schedules. it lasers the So But time because the our

but scanner also customers their buy provide can't to can event the they the get and So they they the in separately, as lasers scanners well in. scheduled that buy

constraint So about. talking that's the supply main we're

Auguste Richard

in Got ] it. And that progressing, you're terms of doing how [ on of production, the then is how the sort capacity? excel

Mark Zediker

And year. ramp-up of by a going is The We XXXX. month we in we'll to capacity or day get produce forward online, have arrive last set And the end we anticipate being will into the next a I the according plan. to equipment Yes. need module the that so. of to up once able the going believe

Operator

and this for for Ladies We your you and gentlemen, disconnect call you ask lines. that conference please today. concludes participating your thank

Nuburu (BURU) 10 Aug 232023 Q2 Earnings call transcript